The effect of categorizing returned products in remanufacturing
The effect of categorizing returned products in remanufacturing
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DOI:
10.1080/07408170490279561
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发表时间:
2004-04
期刊:
影响因子:
--
通讯作者:
N. Aras;Tamer Boyacı;V. Verter
中科院分区:
文献类型:
--
作者:
N. Aras;Tamer Boyacı;V. Verter
An increasing number of companies have been implementing comprehensive recycling and remanufacturing programs. These endeavors typically involve the operation of joint manufacturing and remanufacturing systems. One of the major challenges in managing such hybrid systems is the stochastic nature of product returns. In particular, there is significant variability in the condition of the returns. This paper presents an approach for assessing the impact of quality-based categorization of returned products. Through extensive numerical studies on a continuous-time Markov chain model, we show that incorporation of returned product quality in the remanufacturing and disposal decisions can lead to significant cost savings. We find that these savings are amplified as the return quality decreases, and as the return rate increases. We also show that prioritizing higher quality returns in remanufacturing is, in general, a better strategy.